Running your own business often involves making big decisions – yes, bigger than what biccies to have with your mid-morning cuppa. As a business owner, you will know that best way to make any decision is to be firstly armed with as much information as you can. Knowledge is power and when you’re deciding what public liability insurance policy to take out for your company, it pays to be powerful.
Choosing the right cover for your business isn’t as tricky as solving a Rubik’s cube, but like the often infuriating 80s head-scratcher, there many sides to it.
Comparing public liability insurance is the best way to ensure you get the cover that’s right for you and your business.
So, what do you need to know?
Well, whatever your business is, you’ll need public liability insurance. It’s not a legal requirement, but it’s essential to the smooth running of your business for a number of reasons. In very practical terms, it can help if someone makes a claim against your business if they have suffered injury or damage to their property as a result of work carried out by your company. It will help you contest any claim, taking care of legal expenses, and will meet the cost of any compensation you may have to pay.
Public liability insurance, therefore, gives you peace of mind that you are well equipped to deal with any such problems, allowing you to get on with running your business. Having it in place also shows customers and other companies that you are professional and leave nothing to chance.
Getting the right public liability cover
The business world is a pretty diverse place. From self-employed sole traders to larger companies, with shareholders and boards of directors, all trading and offering a range of goods and services. One thing which unites them is the need to have the proper business insurance in place.
Of course, the size and type of business you run will impact on what type of cover you require.
Insurers will decide on the perceived risk involved in your business operations and decide on the level of cover you require and how much it will cost.
In terms of what level of public liability cover you need, you need to consider indemnity limits. This is basically the maximum amount an insurer will pay out per single claim. This figure can be as low as £1 million but can rise to £5 million. It’s up to you how much cover you want to take out, although an insurance broker will advise you based your type of business. Of course, a higher indemnity limit means a higher premium, which is worth bearing in mind when you are comparing public liability policies.
Comparing public liability quotes
The natural business instinct may be to go for the lowest price when it comes to comparing quotes for public liability insurance. However, your first instinct should be to ask ‘what am I getting for money?’. If the answer is the most basic form of insurance, then the cheapest option may not necessarily be the best.
Take a close look at each quote and work out what’s included in the headline price and what’s not. Some policies will include professional indemnity cover, while others will offer it at an added cost.
You also need to consider other forms of business insurance you may need. A quote for public liability will not include the cost of employer’s liability, which is required by law of you have people working for you, and your overall insurance costs will depend on what additional cover you decide to take out for things like buildings and contents, office equipment, stock, cash in transit and any vehicles you use for your business.